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Old Jan 6th, 2017, 07:12 AM   1
Pearls18
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When you're confident a house is vastly overpriced...


Is there a way we can get our own valuation on a property done? We have found a property we like, but we are very confident it has been vastly overpriced. The property is on the market for OIEO £195k (was £200k) but an identical property (same standard, if not better) sold 20 months ago for £161,000, house prices rise on average 5.4% here a year, that would be a 21.1% rise in 20 months. Itís been on the market since May 2016, itís a village where houses donít come up too often so the fact it has yet to be sold shows me the price is wrong. We offered £180,000 which was rejected (on the premise that the identical house earlier would be roughly worth £178,000 now with house price rises) Iíd reluctantly go to £185k to secure the house but as this isnít our forever home we need to be careful we donít over pay, 185k has been left on the table should he change his mind. The vendor isnít in any rush which is the issue (and neither are we). The estate agent never has a come back to my mention of the property above and just says ďthe vendor will get the price eventuallyĒ, well yeah he willÖÖbecause house prices are rising, but so are the ones he will eventually want to buy! As I say we arenít in a rush, but houses like this donít come up often in the very small area we are looking at, but we donít want to risk overpaying, we will be in it a maximum of 9 years most likely. We can afford the house and could get an AIP for £195k, but worry about making a silly investment (when we only pay £160 a month in rent so itís not like weíre throwing money away on rent currently). Grumble 



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Old Jan 6th, 2017, 08:18 AM   2
Scout
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I'm in the US, so may be different, but here the only way you can have the house appraised is to first secure an accepted offer. Then, you have inspections and an appraisal, and if the house appraises for less than the selling price, you have the option of backing out of the offer if the seller doesn't decrease the price. It's tougher to negotiate though when the seller isn't really all that motivated to get out. Good luck



 
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Old Jan 6th, 2017, 08:37 AM   3
Eleanor ace
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I don't know whether you can get your own valuation done, but I wonder if even if you can, it might offend the seller so much that they wouldn't consider you as a buyer?
We put an offer in on a house and it was declined as they wanted 20k more, it was overpriced but they were confident they'd get it sooner or later as it was a desirable property in a desirable area. We said fine, we're out, we're not overpaying. Looked at other houses and found ours, as we were finishing the buy we got a call from the other agents about the first house saying we could have it for the price we'd offered. It had been about 3 months since we'd offered and I guess they'd realised that they were being unrealistic and were losing money by having it sat on the market and paying estate agent fees. I bet it happens fairly often, sellers being confident that their house is worth more than it is and being unrealistic about the market, and eventually realising they need to lower their expectations.



 
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Old Jan 6th, 2017, 08:48 AM   4
jd83
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Honestly, if it's been on the market since May of 2016, and they've only dropped the price 5k, it's highly unlikely they are willing to sell for less than that. That's a very small drop in price for over 6 months on the market. My guess is they must owe that much, and can't sell it for a loss, so they are just holding out until the market meets what they need to sell the house for.



 
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Old Jan 6th, 2017, 09:04 AM   5
Pearls18
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Thanks all, he got the house for a steal as it was sold by the government 16 years ago, a lot of profit has been made (202% value increase if he does get the full asking price) , I would be very surprised if it's a matter of needing that price to pay anything off especially from speaking to the estate agents, it sounds more like he wants to be a cash buyer for the next move and has his eye on a new build from the last conversation we had. I agree it's not really possible to negotiate with someone who doesn't need to move at this moment in time I've gone back to the agent and asked them to show me how it's a good price by evaluating other house sales they've done in the village, they are happily doing this for us.



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Old Jan 6th, 2017, 10:50 AM   6
catty
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In scotland the seller must get a home report done by a surveyor on the property so normally the price is fairly accurate but a house is only worth what people are willing to pay so even with that in mind if noone is willing to pay it then likely that it is overpriced.
Has the offer been left on the table? Id probably take it off maybe give him a little kick if the only bidder has retracted the offer, if he does want to sell i think you would get a call shortly after asking if you will meet at a price.



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Old Jan 6th, 2017, 11:00 AM   7
LoraLoo
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Tough one- if you did increase your offer to his asking price, your mortgage company would then send a surveyor, and if it doesn't value up as you suspect, they'll not offer you the full mortgage amount. It depends which way you look at it- you could risk this, and the seller could still dig his heels in and refuse to budge on the asking price, and you lose your surveyors cost, or it could give you something to negotiate having it on paper that it doesn't value up.

But before you get to that point I don't think there's an awful lot you can do. If the house prices are rising in your area Id maybe be tempted to increase your offer slightly if you really want that particular house. Could be a compromise for you both, but if he's not in any rush I wouldn't bank on it either.



 
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Old Jan 6th, 2017, 11:16 AM   8
broodymrs
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What loraloo said. That's how we found out we'd offered too much. They refused to budge on price so we had to back out as the mortgage company wouldn't give us the money to buy it. But they did let us transfer the valuation to the property we did buy so we didn't lose the fee we'd paid.



 
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Old Jan 6th, 2017, 11:52 AM   9
Pearls18
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Thanks, we did wonder about this actually because then I guess at least then you'd assume if the mortgage company loaned the full amount you hadn't overpaid?



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Old Jan 6th, 2017, 15:54 PM   10
broodymrs
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Quote:
Originally Posted by Pearls18 View Post
Thanks, we did wonder about this actually because then I guess at least then you'd assume if the mortgage company loaned the full amount you hadn't overpaid?
In theory yes. But another good reason to use an independent mortgage advisor too. When we bought our first house we paid £120k for a new build and they heavily suggested we use their mortgage advisor (which we also had to pay for - didn't realise then mortgage advisors should be free). He secured the mortgage deal but then when we tried to sell the max valuation we were able to get was £110k so we had overpaid. However I do wonder if we'd used someone independent if they'd have told us the house was overpriced.



 
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